compromise. >> the house late last night passed a senate bill that avoids the major tax hikes and spending cuts scheduled to take effect this year. >> the problem is we set up three more fiscal cliffs. we got to look back on this night and regret it. >> president obama has promised to work with congress but he urged them not to play politics with the nation's debt limit. >> i will not have another debate with this congress over whether or not they should pay the bills that they've already wracked up. wall street is ready to rally this morning, after the late night binlget etbudget break-through in washington. >> will this rally last? sandy hook eleme y school students are about to head back to class three weeks after the shooting. classes resume thursday at a repurposed school in nearby monroe. students have toured the school and an open house is set for today. the shell ail rig has run aground off the coast of alaska. no oil leaking.

crew members were evacuated. a paparazzi was killed while trying to get a picture of justin bieber. >> he's free he says i'll take care of business. >> all that a soldier's surprise homecoming at the rose parade in california. >> oh, that's beautiful. makes me cry. >> and all that matters. >> members of congress are furious after the house went home without voting on a relief bill for hurricane sandy victims. >> absolutely inexcusable, absolutely indefensible. we have a moral obligation to hold this vote. >> on "cbs this morning." >> the annual polar bear plunge at coney island could help raise money for coverage. >> i lost my house, i'm going in the same water on new year's day! captioning funded by cbs welcome to "cbs this

morning." i'm norah o'donnell along with anthony mason. charlie and gayle are off. no one in washington or the country seems to be happy about the outcome. >> late last night the house joined the senate that passed a bill raises taxes for people earning more than $400,000 a year and families earning more than $450,000. the bill also extends long-term jobless benefits for a year and puts any significant spending cuts on hold until later in 2013. nancy cordes is on capitol hill. nancy, good morning. >> reporter: good morning, anthony. well if this was high school you'd say they turned in the assignment a little bit late. it was kind of a rush job, but at least they got it done. the house passed this bill with room to spare late last night. the votes were about 2:1, democratic, in favor of the bill, but that still qualifies as a big bipart son viktisan victory around here. >> the yeas are 257, the nays

167. >> reporter: with that vote the long contentious effort to prevent a middle class tax hike came to an end tuesday, though few on either side felt like celebrating. >> reminds me of the jokes we used to have on lennox avenue someone stopped hitting you in the head with the hammer and you're supposed to say thank you so much for the relief. >> the bill before us is not the grand bargain that i and i think most of my colleagues had hoped that we would have been able to achieve. >> reporter: still, the bill is a milestone, finally settling a decade-long debate over the bush era tax cuts. >> permanent tax relief for the middle class, more than 98% of american taxpayers, more than 97% of america's small businesses. >> reporter: the bill also permanently prevents the alternative minimum tax from hitting the middle class. >> we're witnessing something that there's been a great hunger among the american people for

and that is to see finally democrats and republicans working together for the good of the united states. bill passed the president made a point of recognizing republican leaders. >> in particular i want to thank the work that was done by my extraordinary vice president, joe biden, as well as leader harry reid speaker boehner, nancy pelosi and mitch mcconnell. >> reporter: but many house republicans were angry that this deal worked out by the white house and the senate did not include serious spending cuts. >> i'm unwilling to gag down a deal, a bill they've sent over here that's unacceptable. >> reporter: in the end they did not have the votes to change it and everyone acknowledged that this deal sets the stage for a big showdown over spending with a vote to raise the debt ceiling coming sometime in the next two months. >> the problem is we set up three more fiscal cliffs.

>> reporter: one thing this bill doesn't address is the sequester, those across-the-board indiscriminate spending cuts to both defense and non-defense agencies. the bill just pushes off those cuts for two months so you're going to see congress and the white house fighting right away about how to replace the sequester with more sensible cuts once and for all. >> nancy cordes thanks nancy. shortly after the house vote president obama got on a plane to resume his christmas vacation in hawaii but first he complained to reporters about how hard it was to reach a deal and insisted it won't happen again when the debt ceiling battle comes around. >> i will not have another debate with this congress over whether or not they should pay the bills that they've already wracked up through the laws that they passed. the one thing that i think hopefully in the new year we'll focus on is seeing if we can put a package like this together with a little bit less drama, a little less brinksmanship, not scare the heck out of folks

quite as much. >> major garrett is in the white house briefing room where the president made that announcement just hours ago. major, good morning. >> good morning. >> major, just to start with what was the reaction from the white house once this deal finally passed? >> there was many reactions but i would say the three dominant words described as this relief a sense of triumph and also a sense of regret. let me take those in order. there was genuine relief in the building that the deal got passed. there were hours of very profound anxiety here yesterday that the house would not pass. there really was not an alternative plan if the house amended the senate bill or sent it back or killed it entirely. the president felt slightly powerless watching house republicans sort it out, by about 6:00 last night they xwan to feel this was going to happen. also a sense of triumph resolving the tax increase debate on his terms, largely on his terms, for the first time getting republicans and the senate and the house to vote for higher income tax rates a year and a half ago said they'd never vote for any higher taxes,

they wouldn't vote for higher income tax rates and now they have. also resolving the debate without touching entitlements in any significant bay. the regret is this is not a grand bargain and as nancy cordes indicated there are more fights to come and they're coming very soon. >> the president did stand his ground to some degree and won out, no spending cuts and the extension of the tax cuts for the middle class. what do you think the white house learned from this whole episode? >> first of all, necessity is the mother of invention. this deal needed to get done and everyone had to participate and the other thing the president learned is that things can change very quickly. for weeks and weeks and weeks mitch mcconnell the senate republican leader had nothing to do with the negotiations or had any prospect of resolving this. suddenly he became the key player. similarly vice president biden stepped off the sidelines and became the number one negotiator representing the white house with mitch mcconnell. the president learned that combination can work in the future and also yesterday the white house gained new appreciation for speaker

boehner, because though they've doubted him in the past they saw he was able to put this deal through last night and avoid the fiscal cliff both for him, senate democrats and this white house. >> all right major garrett, thank you. and before the house vote retiring republican congressman steve latourette of ohio said the members of the congress who voted for this "must have been drunk" he voted yes and he joins us from capitol hill. congressman, thank you for joining us. this was an extension of the tax cuts for most of the middle class and yet no spending cuts. how could you vote for that? >> well because it's that choice that if there was no deal taxes would have gone up on every american and the speaker's staed objective was to always spare as many people in the country as he could from a tax increase. at the end of the day we got

whooped. had we put simpson-bowles the grand bargain on the floor last week i got a grand total of 38 votes on the big deal and 38 votes even in the math challenged person like myself is not what you need to win. >> congressman, i know you were joking when awe cused some of the senators they must have been drunk when they voted for this but i have to tell you, you've left this country with a huge hangover because now you've got about $4 trillion in debt added to the deficit, and no spending cuts. i mean again, what is wrong with congress? >> well it's outrageous because no one will make the difficult decisions necessary to get this thing done. this is a problem that requires a $had trillion to $6 trillion fix. quite frankly the president won't see the leadership to do it on the entitlement side we've been slow to the dance on the revenue side and just about the senators being drunk, since you mentioned it twice, my wife has yelled at me and i'm supposed to say that nothing good happens after midnight on new year's eve.

>> that's right. >> congressman you make the point, there were no hard decisions made here. you haven't dealt with the debt ceiling. you haven't dealt with the deficit or spending cuts. >> yes. >> isn't this legislation by procrastination? >> it's worse than that. if you take the president's numbers on what the extra revenue is, about $66 billion a year. it has $600 billion in new spending so it not only doesn't cut spending but increases spending by a little bit and wore rowing $1 trillion. you don't have to be a math professor, we all knew the president was going to get his way, he campaigned on raising taxes, he wanted to raise taxes he wins but now it's time for people to face up to the fact it's not just on the revenue side. you really have to come to grips with some of these programs that have been around since the great depression and figure out how to make them viable and sustainable in 2012.

>> two quick questions, congressman real quick. wouldn't you have been better off if boehner accepted the first deal with obama? at least you would have gotten some spending cuts. >> no, the president was never serious about spending cuts and the president's spending cuts put $300 billion over ten years, that's a joke as well. this required a big deal on taxes, on spending and everybody's afraid to make the deal. >> congressman a lot of people are outraged the house canceled its plan to vote on a relief package for victims of superstorm sandy. senator schumer called it heartless. why was there a reverse? >> the reverse came about basically the same i call them chuckleheads and i'll call them chuckleheads again, the same chuckleheads that jet ison planned b a week ago said the $60 billion or 27 and 33 isn't paid for and because it's not paid for we're not going to do

anything about it. i guess they don't have tvs in their homes and they haven't seen the suffering on staten island and coastal new jersey. it doesn't make any sense to me. an emergency is an emergency. these are americans who are suffering. we should have had the vote and i talked to the speaker in the cloak room at 11:00 last night. he says he's going to take care of it quickly. i hope he does. because this is another example of people just not getting it. >> congressman steve latourrette thank you for being with us. the dow has gained over 200 points since the opening. rebecca jarvis says the relief may not last that long. >> good morning. >> the markets liked this at first. >> they liked the fact that we have some certainty on tax policy for the american people the consumers, which drive this economy, 70% of our economic growth comes from the american consumer how we spend. the fact that we now know what kind of taxes we're going to be paying in 2013 creates that

certainty. however there's still a great deal of uncertainty when it comes to what happens with spending which they kick down the road they'll be dealing with that and what happens with our $16.4 trillion debt? that's another debate that's coming in washington and there are people who are saying it could be as vitriolic if not more so than the one we just saw. >> why is the market responding positively when a lot of people see this as a bad deal that didn't deal with some of the big issues spending and our deficits? >> there's an irrationality in the market and short term thinking in the market. we saw this throughout the deal. if it looks like there might be a deal all of a sudden the market rallied. if it looked like the deal was falling apart, the market fell apart. the market isn't purely rational and also reactionary at this moment in time. that's what we're seeing. longer term down the road what people on wall street are discussing they're not giving each other high fives. investors are saying there's more to come and we have to look at what happens to companies and what happens to government

agencies once these spending cuts actually do take effect or once they're discussed. >> rebecca jarvis thanks. to find out specifically what the fiscal cliff agreement will mean for your taxes go to our website cbsnews.com. here in new york secretary of state hillary clinton is still in the hospital but her doctors say she's making excellent progress in recovering from a blood clot that is inside her skull. margaret brennan is outside new york presbyterian hospital in northern manhattan. margaret, what are they saying about secretary clinton's status right now? >> reporter: good morning, norah. secretary clinton is still undergoing treatment for that blood clot between her brain and her skull. her spokesperson says that he will share new information when there is something to update. when clinton was hospitalized on sunday, that same spokesperson said that doctors would monitor her for 48 hours. we are now beyond that window but doctors tell cbs it often takes more than two days to

establish the exact dosage of blood thinner. it can take weeks, even months to dissolve the clot and typically it can take up to six months for full recovery but it doesn't require hospitalization. >> so is there any talk about when she might return to d.c.? >> reporter: it isn't clear. secretary clinton is expected to step down at the end of the month, once a replacement is confirmed. senate staffers tell cbs that there is no word yet on when those confirmation hearings will begin to approve john kerry to be the next secretary of state. in the meantime clinton is not expected to travel. she hasn't made public appearances in three weeks because of these health issues but we are told she is still working from her recovery bed. >> wow. margaret brennan, thank you. and students from newtown, connecticut, sandy hook elementary school go back to class tomorrow. it has been nearly three weeks since a gunman killed 20 first graders and six staffers at sandy hook elementary.

the students will not return to that school. they're going to go to a school in a neighboring town. backpacks and other belongings they left at sandy hook have been moved and police and grief counselors will be in the hallways. officials in alaska say calmer weather may allow the coast guard to inspect the shell oil rig that ran aground monday. they say there are no signs that it is leaking. the rig is grounded on a remote island east of kodiak alaska. as lee cowan reports, high winds and rough seas are hampering efforts to get to the scene. >> reporter: aground on a rocky shoreline, shell's $290 million drill barge is at the mercy of the merciless waves, some close to 50 feet high. although all 18 crew members were evacuated by the u.s. coast guard, what remains, more than $160,000 gallons of fuel and oil stored in her hull and that has captain paul meyler worried. >> any time you have the risk

this presents we have to take this as a big deal. >> reporter: for now the kulluk steel hull is holding. as a precaution as many as 500 people are staging equipment up and down the coast to help contain and clean up any leak or spill. >> there's always the threat this vessel is on the rocks, and there are still very heavy seas so that's why we're moving with all the response equipment and preparing. >> reporter: the kulluk doesn't have its own propulsion. it was being towed to seattle for routine maintenance when it broke loose from its tug in a massive storm. it's used largely for test drilling and part of shell's effort to open arctic waters to oil production, one of the last untapped regions in the u.s. but that exploration has been opposed by environmentalists saying the conditions are too difficult in the gulf of alaska's frigid waters.

for "cbs this morning" i'm lee cowan in los angeles. and time to show you some of this morning's headlines from around the globe. "the new york daily news" says al qaeda has put a gold bounty on america's ambassador of yemen. they offered three kilos of gold worth $160,000. the ambassador's 94-year-old mother says he hopes he has enough security. pennsylvania's governor plans to sue the ncaa over sanctions from penns from penn pennstate from the jerry sandusky child sex abuse scandal. "the telegraph" talk about a man swept into sea, william's helicopter turned back after battling 50 mooil-mile-an-hour winds. "the new york times" says north korean leader king

a frosty start to the day. some of the temperatures into the 20s and the 30s in the valleys. 28 in fairfield. 29 in concord. 27 degrees in santa rosa. frost even inside the bay this morning. this afternoon, highs running up in the 50s. maybe 57 in san jose. 53 in san francisco. and 52 degrees in concord. next couple of days, cold mornings, cool days ahead.

she attended one of new york city's top private schools. he went to harvard. now they're accused of collecting bomb-making tools including a powerful explosive. >> it's extremely potent, which is one of the reasons why it's so appealing for terrorists to use. >> this morning we'll look at the charges against the couple. and the faa orders inspections for dozens of older airliners, three years after a southwest 737 landed with a hole in the roof. we'll ask peter greenburg if any planes out there are too old to fly, on "cbs this morning." a ar

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a water main break stopped traffic in hayward this morning. the break is flooding ja he highway 92 it is 7:26. i'm elizabeth wenger. a water main break stopped traffic in hayward this morning. the break is flooding jackson street right there near the highway 92 off-ramp. they hope to have it capped very shortly. >> and the east bay water rate hike is up for discussion tonight. the contra costa water district is considering a 3.5% increase. the meeting starts at 6:30 at district headquarters in concord. and stanford has won the rose bowl for the first time in 40 years. the cardinal scored touchdowns on their first two possessions and beat wisconsin, 20-14. we'll have your traffic and weather coming up.

good morning. so far an easy commute as you work your way toward the bay bridge toll plaza and south bay turned off the metering lights

no delays as you head into san francisco. jumping over to 880 right now, we had an accident near fruitvale. looks like all clear on that southbound side. still a little slow coming away from 980. northbound not showing any trouble spots this morning. capitol corridor delays systemwide. hope to wrap that up soon. the rest of mass transit is on time. bart, ace, muni, caltrain and your ferries no delays. here's lawrence. >> a cold start to the day. chilly temperatures mostly clear skies outside right now but bundle up, bay area. we have some cold temperatures out there. some widespread frost expected. 27 degrees in santa rosa, 28 in napa, 30 degrees in livermore. and 34 degrees in san jose. i think by the afternoon we'll thaw out. temperatures running up into the 50s. staying cool though in parts of the east bay only low 50s there. the next couple of days, high pressure holding on to keep us nice and dry. we'll have those chilly mornings. mild afternoon temperatures in some spots. but then the clouds gather, slight chance of showers on sunday.

raising money for victims of superstarm sandy, some of the swimmers were survivors of the disaster. welcome back to "cbs this morning." it was 39 degrees in new york yesterday. >> that's right, there you are right there, in the blue trunks? >> that would be me, yes, trained for months for that. >> all right, also here in new york there's a very unusual criminal case that is bringing back memories of the 1970s, a man and a woman from privileged backgrounds were arrested over the weekend. police say they found weapons and bomb-making materials inside their apartment. seth doane is here with that story. >> good morning to you norah.

the suspects have pedigrees you'd expect of children from new york's elite. morgan gliedman went to dalton school, nyu and the art school of chicago. her boyfriend aaron green claims to have gone to harvard. when they were arrested inside their apartment saturday police found a container of the powerful explosive hmtd in their living room, forcing the evacuation of their neighbors. hmtd was the same explosive believed to have been used during the 2005 london bombings. >> it's extremely potent and one of the reasons why it's so appealing for terrorists to use because essentially they can get all the ingredients for this at local hardware stores. >> the 27-year-old gliedman is the daughter of a prominent real estate agent and top rated new york oncologist. she was also nine months pregnant at the time of her

arrest this weekend and gave birth to a baby girl soon afterwards. cbs news has learned the police seized two shotguns a flare launcher, nine high-capacity rifle magazines, various handwritten notebooks containing formulas literature on how to make boobytraps and homemade weapons. "the new york post" reported green was a member of the occupy wall street movement but the group has denied this. >> the assumption is that the vast majority of the people there were peaceful protesters but there was a more radical fringe element to the group and it was a concern at some point they might turn to violence if they weren't accomplishing their political aims. >> reporter: the arrests reminiscent of other children of privilege, whose lives somehow went awry. who could forget the pictures of newspaper heiress patty hurst joining her kidnappers in a 1974

bank robbery and in 1970 just two blocks from where gliedman and green were arrested a bomb being assembled by the weather undergrounds, a radical group, exploded killing three people and destroying the brownstone where they were staying. gliedman and green have prior drug arrests. each have been charged with two counts of criminal possession of a we bon. green is due back in court on friday. gliedman couldn't be arraigned this week while she was in labor, will make her first appearance next week. >> seth they also found weird literature in the house, too, right? >> we got this list here it's kind of surprising improvised and modified firearms do-it-yourself submachine gun, terrorist encyclopedia homework shop gun, not typical reading for greenwich village. >> not something you examine the to read while pregnant. >> neighbors and relatives knew them as excited about having this child and say they were surprised. >> seth doane, thank you.

this morning the federal aviation administration is ordering more than 100 older boeing 737s to be checked for cracks or holes in the fuselage. most of the planes are flown by southwest airlines. cbs news travel editor peter greenburg is with us. good morning. >> reporter: good morning, anthony. >> what exactly is the faa ordering and what's prompted them to do this in. >> let's go back to history. the first wake-up call in 19 8, the aloha airlines the flight attendant sucked to her death, seven injuries we've got to look at the way the planes are made because they're high cycle planes. they fly a lot of takeoffs and landings. cycle is a takeoff and landing. every time you cycle the plane you are pressurizing the fuselage and depressurizing and that can lead to petite cracks and rupture in the skin. the baltimore to nashville, made

an emergency landing in 2009 and 2011, another southwest between phoenix and sacramento made an emergency landing in yuma. they're calling for more repetitive inspections, not just visual but electromagnetic inspections because if we don't get the fatigue cracks early enough they could lead to cracking and a cracking of the fuselage. >> you're basically saying these high cycle aircrafts are put under more stress and there are are more vulnerable? >> exactly if they're not properly inspected. for example a 737 is not unusual for a plane to do seven or eight takeoffs and landings a day. the 747 may do one or two. it means you have to do more inspections and more frequently to catch the problems early. every plane in its history will develop these cracks. they are not by nature necessarily dangerous unless you don't treat them. >> peter is as a frequent flyer

should i be worried? >> no, this is not the only directive the faa issued. the 737 is the most popular plane ever built, more than 10,000 of them and boeing manufactured them at the rate of 30 a month. not a problem. $5 million in inspections and $2 million to do the repairs that's pocket change considering the planes out there. the real key is not just the planes in this country, the planes flying around the world 737s not part of this directive. >> it's interesting to note the plane involved in the 2009 emergency landing had 42,000 flights on it. that's a lot. you're talking about a lot of mileage on these guys. >> a lot of mileage. once again there are still dc-3s i'd get on tomorrow. it's not a question of the age of the plane it's the cycles versus the inspection regime and that's what the faa is asking for, more repetitive inspections and i think they're right. >> peter greenberg happy new year to you. >> and happy new year to you guys. would you let strangers live in your house for $1 a month?

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>> your realtime captioner: linda marie macdonald good morning, it is 7:56. i'm elizabeth wenger. fire and public works crews are still working on a water main break in hayward. they had to shut down lanes of traffic on jackson near 92 off- ramp. police say it does not appear the water has damaged any property. silicon valley now has two college bowl champions. stanford university won the rose bowl last night for the first time in 41 years. the cardinal scored touchdowns on the first two possessions then beat wisconsin 20-14. stanford's victory came just five days after san jose state won the military bowl. good for them. traffic and weather coming right up.

good morning. overall it's an easy ride as you work your way along the

golden gate bridge this morning. no delays into san francisco. in fact, a nice ride out of marin county, as well. we have an accident along 880 northbound near embarcadero blocking one lane causing some slight delays around the area but overall 880 hasn't been too bad. it's been quiet on the southbound side and again just a few brake lights approaching the accident northbound. past there you're clear towards the bay bridge. mass transit on time and capitol corridor recovering from earlier delays. lawrence? >> all right, gianna. we had a cold start to the morning. out the door one of the coldest days we have seen in quite a while. looking out toward the pleasanton area, the chilly temperatures in the 20s and 30s in many of the valleys. freeze warnings continuing in the north bay right now. widespread frost outside, as well. 40s at the coast. looks like by the afternoon, highs will be in the 50s, a little cooler only low 50s in the interior valleys and the north bay and east bay but toward the next calm days, we'll see chilly -- as we head toward the next couple of days, we'll see chilly nights, no rain until sunday.

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it's 8:00 a.m. welcome back to "cbs this morning." congress finally backs away from the fiscal cliff but at what cost? pwe' ll lwe'look l loat sok aome t soof tme ohe nf thew e new spending in that bill, and new research shows overweight people ma y limay ve lliveonge lonr.ger. this morning we'll talk with the ceo of weight watchers. but first here's a look at today's "eye opener" at 8:00. if this was high school, you'd say they turned in the assignment a little bit late. it was kind of a rush job, but at least they got it done. congress has done what they needed to do to avoid the fiscal cliff, but no one in washington or the country seems to be happy by the final outcome. >> he campaigned on raising taxes. he won on raising taxes.

he wins. >> this is not the grand bargain. there are more fights to come and they're coming pretty soon. >> there haven't been spending cuts. isn't this legislation by procrastination? >> it's worse than that. secretary clinton is still in the hospital recovering from whe& shp e wa whes hn she was hospitalized on sunday her spokesperson said she would be monitored by 48 hours. we're now beyond that window. in new york there's this very unusual criminal case that's bringing back memories of the 1970s. the suspects had pedigrees you wouldn't expect of new york's elite. >> this helicopter was trying to make a rescue on a beach in rio de janeiro, brazil but it crashed into the ocean. >> would you let strangers live in your house for $1 a month? >> kindness creates kindness. every year the crowd gets bigger where the polar bear plunge takes a goose-bumps raging plunge. >> isn't that you there in the blue. >> that would be me. it ook& me pit monttookh me months to train for th that.

i' m no rah i'm o'donorannelh o'l aldonnong ell along wi h a- wnthoith ny manthasonony .mason. charlie and gayle are off. >> the fiscal cliff is history pfor for now after congress approved a a not cut spending. there were some last minute eff& rtspeff byorts by house republicans to change the bill without one-third of them ended up vot& ng pvotyes.ing yes. nancy cordes is on capitol hill. good morning. repp>> orterepor: grterood : gomornod ming.orning. pwe now we nfinaow flly inalknowly k witnow h with certainty who's going to be keeping their bush-era tax cuts. the answer, just about everybody. the cuts were extended for all household income under $400,000 under 450 for families. the bill permanently prevents the alternative tax from hitting middle class families and ex tendexteed tndedhe the unemployment for a couple mill jobless americans.

what this bill doesn't do is deal with the spending side of the fiscal cliff. that sequester, the package of across the board spending cuts that's supposed to kick in at the beginning the year to both defense and nondefense related agencies. the negotiators were only able to come up with a plan to push that sequester off for a couple of months and that means, norah, that a fight is going to start right away between congress and the white house over how to come up with a package of sensible cuts to replace that sequester. >> nancy, you mentioned that the sequester was not dealt with. it also didn't deal with the debt ceiling which needs to be dealt with in the next couple of months. so what happens now? is there still hope for grand bargain or is that done? >> reporter: well, that grand bargain the president had been working out with speaker boehner was supposed to include raising the debt ceiling. that grand bargain fell apart and now congress is going to have to vote in pretty short order to raise it and republicans are already saying they're not going to do that unless they get some big spending cuts in return.

you heard the president say repeatedly he's not going to negotiate over this again. he doesn't want to see the nation's credit downgraded. he wants congress to just pass it right away, but he doesn't control congress. pso if hso ie waf hents wanreputs rblicepubans licato ns to vote in favor of raising the debt ceiling, he may have to negotiate with them, norah. >> nancy cordes. thanks, cordes. vice president joe biden is getting much of the credit from both republicans and democrats for nailing down the deal. the message is biden is back. good morning. >> reporter: it's a fresh start for joe biden, no question about it. he's been the chief negotiator with congress on the fiscal cliff. that was a good thing for biden after his foot in the mouth style often got him in trouble wi thwith the boss in 2012. but last night all was forgiven. >> i want to thank the work that was done by my extraordinary

v ce & respvicidee president >> a presidential ata boy. >> happy new year. >> the white house sent the vice president to the capital twice to&-pto convince skeptical democrats that the fiscal deal was a good one. he prehe psentreseed hntedimse himlf aselfs th as e mathe n man who could deliver. mitch mcconnell, the senate's top republican ditched harry prei d, hreidis c, hiounts coerpauntert arparcrost acs throsse the aisle, and asked to negotiate exclusively with biden. the two men talked around the pclo ck oclocn thk one ph theone phoaftene ar fter midnight on monday and at 6:00 later that morning. >> i appreciate the vice president's willingness to get this done for the country. >> reporter: it was the second time in two weeks that the p ppre sidepresnt pidenut ht puis nt hiumbes nur twmbero in two in charge. >> the president asked me to convene this meeting with you. >> reporter: last month the vice ppre sidepresntident was tapped to address biden's return as the chief

of gaffes. essentially benching the vice president after he jumped the gun in may and endorsed same sex marriage. >> i'm absolutely comfortable with the fact that men marrying men and women marrying women are ent tle& topent theitled to the same exact rights, all the civil rights. >> reporter: that forced the ppre sidepresnt tideno cht toange cha hisnge poshis itioposintionpppp on it earlier than he planned. pand and then in august he outraged people when he said this about mit& ropmitmneyt ro tomney to an afr can& amepafrricaicann -american audience. >> he's goi>> hng te's o legoint thg toe bi letg the big bank banks run the rules. unchain walunchl stain reetwall. street. >>boo& p>> boo. >> the y're>> t goihey'ng tre go puoingt yo to u put you all in pbacchaik inns. chains. >> reporter: but he rebounded with a strong debate performance in october a week after the president's disappointing showing in september. >> with all due respect, that's a bunch of malarkey. >> reporter: the white house has always used the chatty folksy vice president as a messenger to

the middle cass. but the friendships that he bu capitol hill to get t his deal. so after this, the white house won't likely begrudge him a few more verbal gaffes. >> all right. bill plante, great reporting. thank you. and it's hard to get a budget bill through congress without adding something which you might be surprised to hear the fiscal cliff compromise inclapincludes $430 million for hollywood to penc ouraencoge turagv ane tvd fi andlm p filrodum prctiooducntion in the united states. $222 mi llio$222n million for puerto rico and the $70 million for nascar to allow certain racetracks to continue to recover their costs. >> the house said to not to vote on a relief bill for victims of superstorm sandy. on friday the senate approved

$60 billion of aid for new jersey and new york which were devastated by sandy. leaders called off the vote because of the fiscal cliff deadline. new york lawmakers are steaming. >> hurricane sandy struck on october 29th. eight, nine weeks ago. it's unprecedented that it should take so long. and yet we are now told that this house is going to adjourn, that even though the senate pvot ed fvoteor td fohe ar thid, e aiwe'rd, we goe'reing going to do nothing, it's unprecedented. it's disgusting. >> there's no way to sugar coat th is.this. a new study finds eating fructose may trigger brain activity that makes you overeat. fr uctofrucse itoses ad is ded addeto dd torink dris annks d and foods. psci entisciestsntists studied brain mri. they found the brain fails to react to feeling full the way it does when people eat regular sugar. the researchers say this leads to more eating and potentially to obesity.

and there's one study that suing gift -- suggests there's anadv& ntapange t it c uld- i helt cop yould u lihelpve l youonge livr.e longer. le w peith oplea bo witdy mh a ax ibodyndex max index considered overweight have 6% lower risk of death than people with a normal range bmi. th e stthe udy studalsoy al fouso fnd toundhat thaevent ev en people considered moderately obese do not die any sooner. now critics say the study included thin people who were actually sick or dying and i should also point out on the study, too, a lot of people say using bmi as an index of whether pyou 're you'overre oweigverwht oeighr obt orese obeis se is not a good one. we'll talk more about this. we don't want to confuse people. pwe' re n weot g're oingnot to goinsay g tobe f sayat, be fat, pliv e lo lingerve l.onger. i k& ow.pi know. a f& w epa fxtraew e pouxtrands pouwon'nds t huwon'rt t hurt you but it's important to be healthy and we're going to talk with the ceo of weight watchers. >> someone who should know. >> exactly.

drunk driving caused nearly 10,000 deaths last year. we'll look at the debate over new technology designed to prevent drunk drivers from starting their engines. th at'sthat ahe's aad oheadn "c on bs t"cbshis this morning." ed nearly

10,000 deaths in the u.s. last year. we'll look at the debate over new technology designed to prevent drunk drivers from starting their engines. that's ahead on "cbs this morning." every day. ♪ ♪

millions of americans swear they're going to drop some pounds this year. they also said that last year and the year before. the ceo of weight watchers has been watching his own weight for many years. pdav id kdaviirchd kihoffrchh saioff d fosaidrget for get about willpower, just get smarter. we'll talk about obesity and how

hard it is to overcome next on "cbs this morning." >> announcer: this portion of "cbs this morning" sponsored by lifestyle lift. find out how you can light up your life.

guessing you never tried. a man in australia says this 220-pound -- yes, 220-pound hamburger does the trick. it has all the usual fixings including eggs bacon and barbecued chicken. >> what's the random chicken in between. >> i'm like how does the chicken get in there? >> that's not helpful. that's not helpful. all right. losing weight is number one on the list of new year's resolutions and david kirchhoff knows how hard it is to keep that vow. the president and ceo of weight

watchers had to do it himself. he turned his own struggle into a book "weight loss boss." >> that burger looks like 12,000 points. >> exactly. the point system. i have to show everybody too. you've got this new book out. but also you're not just the president we were joking. you're also a client. this is you before. you were a little bit heavier. we can see it certainly in your face, but nice cat and nice sweater there. >> poor cat. cat sweater. >> how did you lose weight? >> by going to weight watchers. i joined as an employee. i started going to meetings because i thought i should learn more about it and this very surprising thing happened which is my hecht changed in front of me. i did the program like a lot of people do the program. it took me nine years to get to my goal weight. >> really? >> how much did you lose? >> 40 pounds. but i've kept my weight off for four years which has frankly been the more important part of

my story which i is think the get the people out of the dieting mindset and more into the mindset of making permanent changes in terms of lifestyle and health. >> you say willpower is largely overrated. >> it is. >> i mean it's not enough. >> the problem is what we know about our brains and our bodies is we're wired to consume. it's a survival mechanism. yet we're surrounded by 600 more calories in the food system per person today than in 1970. we're surrounded by junk food. we're responding to it. we're eating and lo and behold we have an obesity epidemic and this knowing of somehow being strong enough to resist temptation is one that's completely overrated. you're much better off learning how to rewire your own personal environment. >> can i say something what i think about dieting. measure it achieve it. weight watchers u you mesh with points others use online apps. it's a simple formula.

how many calories you put in how many you burn. >> it is and it isn't. a calorie's not a calorie. if you try to lose weight losing only half a doughnut, that's a tough way to go because you're going to feel miserable and deprived. the trick is not measuring calories but using a system guiding you toward the stuff you know you're supposed to eat, fruits vegetables legumes and whoa grains. the value of tracking is it makes you more mindful of what you're doing. so it's less about managing a perfectly challenged equation but nudging yourself. >> the cdc says two out of three americans are overweight. >> yep. >> you say it has the toobt crush the life out of our weight loss. should the government be legislating portions health care? >> there's balance in all of these things. obviously personal responsibility plays a huge role in deal with a lifestyle health

issue such as obesity, but, for example, we're big supporters of nutritional labeling on menu boards because giving people better information allows them to make better choices. i think what the mayor recognized was there's an arms race going on between the consumer valuing value over massive quantity and movie theaters and restaurants responding to that. you can't get a cup in a movie theater that's less than 32 ounces. who drinks 32 ounces? it's kind of crazy. you may have to put your household budget on a diet this year. rebecca jarvis will help you plan for that when "cbs this morning" returns. your local news is next.

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>> your realtime captioner: linda marie macdonald it is 8:25. time now for some news headlines. at least one of the four people accused of killing a millionaire in his monte sereno home is due in court today. meanwhile the "mercury news" reports victim ravi kumra had been accused of trying to hide millions of dollars from creditors. this is the last day of operations for a san francisco museum before it moves. the exploratorium closes for good at the end of the business day at its location near the palace of fine arts. the museum is scheduled to reopen at its new location along the embarcadero april 17th. and all lanes of traffic are open on a busy street in hayward following a water main break at jackson and santa clara streets around 3:30 this morning. public works crews are still

trying to figure out what caused it. we'll have a check of your traffic and weather coming up.

good morning. let's head to the bay bridge toll plaza right now where traffic is very light in fact an easy morning so far for most. roads. no delays into san francisco. and you're clear once you get into san francisco along the 101 and central freeway. elsewhere westbound 580 at 680 an accident clearing out of the right lane. slight backups as you make the connector at the dublin interchange but overall not

bad. east of there through the altamont pass, still looking about a 21-minute ride to go westbound 580 out of tracy into livermore. eastshore freeway westbound we had an earlier accident looks like near berkeley. that is now cleared. you can see traffic free- flowing all the way towards the bay bridge there and no delays on the golden gate bridge. you're clear into san francisco. and 880 though a little slow northbound through oakland. a lot of sunshine around the bay area. we are going to need every bit of it a very cold start to the day out there right now, a lot of frost even inside the bay. a very cold morning outside a lot of those temperatures dropping down into the 20s in the north bay valleys. 27 right now in santa rosa, 28 in the napa valley, 30 in concord and 31 degrees in livermore. a lot of 30s even inside the bay. so a frosty start. by the afternoon, we'll thaw out. lots of sunshine all day long. still staying cool in am so of the east bay valleys only in the low 50s there, highs 57 in san jose. about 53 in san francisco. and 56 in santa rosa. next few days, chilly mornings, fairly mild by day.

welcome back to "cbs this morning." just because congress made a deal to avoid the fiscal cliff doesn't mean everything's okay. congress will still have to fight over spending cuts and most taxpayers will still see their taxes go up. that's just one thing to consider when you plan for 2013. rebecca jarvis is back to show you how to deal with the changes on wall street and in washington. good morning again. >> good morning again. >> the bottom line is we're all going to be paying more. >> most people are yes. 77% of americans are going to see their taxes rise and that's in part because of the payroll tax which was cut to help avert some of the recession's damage. that is going up on everyone. so now it's 6.2% instead of 4.2%. the average family say you make

between $50,000 and $70,000. you're going to see your taxes go up $10,000. if you're making 100 to 200,000 that's going to see $1,000 to $2,000 increase there. >> what about the retirement savings? >> it should be from you. it should be from you. continue to see how to make more changes personally that can put more money in the bank that can plan more for your own future because ultimately when you look at where things are protected to be cut on the spending cuts think about medicare, i think about the entitlement programs think about social security. those are areas that haven't been discussed formally yet. they haven't been made into a deal but they very likely could be made into a deal and the only way to protect yourself is to save. not enough people are thinking about this. just 42% of americans have thought about it. crunch the numbers. you need about 40% -- or social security replaces just about 40%

of your income when you're actually in retirement. 60% is going to be coming from you at least. >> that's a big number. i mean so basically how should we be saving then at this point? >> the number one thing that you can do at yourself is a roth i.r.a. and contributions to your 401(k). here's why. with a roth i.r.a. you can take it out without paying taxes on it. it's the only retirement vehicle that you're not going to be pays taxes on whatever the gains are. >> that's only for some income levels. >> some. but most people can max it out this year with $5,000 if you're over 50 years old you can put $6,000 in and it can still apply to the 2012 tax year as long as you put that money in bf april 15th. so it's very important to do that. you could do it now before april 15 and after april 15 contribute another 5,000 or 6,000 if you're over 50 years old.

it's very important. the 401(k) especially if your employer has a match, you want to do that. if of your employer came to you and said would you like a 3% raise, you wouldn't turn it down. that's what the match looks like. it's the free money. give me the money. show me the money, baby. >> what about the stock market in all this? we've had so many dips and turns here with all this concerns about the fiscal cliff and there are going to be more of these. should we be investing in the market? >> ultimately the market is what returns more than most other savings vehicles. last year with all the dips and turns the s&p 500 still managed to return 13.4%. on average if you look at it historically, the s&p 500 returns between 5% and 7%. and if you look at let's say you have a normal savings account or checking account. if you've looked at that lately, you're not getting paid much to keep your money there stagnant in the bank. i'm not saying to take all of your money out of the bank and put it in the stock kkt but

ultimately you want to get paid for the money you set aside and you're going to get paid in general more in the stock market than if you leave it in the bank account where interest rates are zero and the federal reserve says they're going to remain there for some time to come. >> rebecca jarvis making us smarter again. thank you. and this won't be available in 2013 but a massachusetts company is working on new technology to keep drunk drivers off the road. this morning mark strassmann looks at a couple. >> you never get over the loss of a child, your son. it's the worst thing you could ever go through. >> meredith and matt east ridge were driving home in october 2010 when another car speed 1g 00 miles per hour hit them head on. they both were critically hurt. meredith six months' pregnant lost their baby son. >> i think about him every day and think about, you know how old he would be and what he

would be doing. >> the family you would have had. >> right. >> david huffman drove the other car. surveillance video from the charlotte bar showed he had the equivalent of 15 drinks in two hours. he stumbled outside and three minutes later was killed when his car crashed into the east eastridges. >> it's something that could have been presented. this is 100% preventable. >> reporter: outside boston a company called kin qin qinetiq is coming up with a plan. >> we'venary ohhed it down to two different technologies. one is breath-based one is touch-based. >> ideally if someone's drunk behind the wheel, the car will not start. >> it will not move.

>> it sends an infrared light into the fingertip. it measures the tissue's alcohol content or a sensor near the steering wheel can test a driver's breath. in a half second it reads whether the driver's alcohol count is above .08, the national legal limit. zaouk's team is still working through every driver scenario. >> so it could sense whether the person touching the button is sitting the in driver's seat. >> or somebody else is trying to reach and touch the button. >> it could be ready by the end of the decade. >> this is the single best opportunity we have to prevent 10,000 people from dying a year. it's the equivalent of a seat belt of our generation. >> reporter: but the effect knollgy is opposed by the american beverage institute. a group representing 8,000 restaurants. they worry about inaccurate sensors which could eliminate a person's ability to have glass

of wine at duaner a beer at ball game or a champagne toast at a wedding and drive home. huffman's autopsy shows he was three times the legal limit. >> there were multiple times it could have been prevented. >> if you're over that limit, that car shouldn't work. >> since their accident the eatridges have had a daughter, sloan, and won a settlement against the bar worth $1.7 million. both say they would give back every penny for one more day with the son they lost. for "cbs this morning," mark strassmann, charlotte. she became a powerleful sports agent. he said

and a fake. they come back the other side. reverse action. a touchdown! >> stanford beat wisconsin, 20-14 yesterday in the rose bowl one of six college bowl games on new year's day. stanford and wisconsin will earn $20 million for their athletic conferences. the players on the field won't see any of that money and dr. jerry argovitz says that needs to change. his new memoir is "super agent," the one book the nfl and nba don't want you to read. good morning. >> good morning. >> they don't want you to read it because you compare them to the mafia and you say it's like two crime families cooperating. >> yes, i do.

>> why? >> well they really have a cartel and they put themselves together. they're the brightest, smartest people you've ever been around when you think about the ncaa and what they've done. that i have a 17-year-old, 18-year-old young man coming out of high school. most of these kids their whole desire is to go play football and sports. >> a lot of them are poor. >> exactly. a majority are african-american kids. they come from single-family households. they come from economic disadvantages. most of these kids come -- the majority come from no father figure. by the ncaa rules and standards and regulations these kids aren't allowed to have an agent to tell them what the contract says.

they sign a grant and aid. to me that's a contract. no vice. oh, yeah they can hire a lawyer. i don't know many poor families that can afford $2,000 to read a contract and the contract is so vague i can't even understand it, so there's no way a 17-year-old, 189-year-old kid can understand it. >> so how would you change it? do you think players should be paid and should they be allowed to have agents? >> i think the only way that this can be corrected, the nfl has a players association, the n nba has players' association and the kids should have their own independent association bargaining for them. a that point it can be fair and regulated into the system. >> well what would help these players then if they had sump an association. i mean clearly these universities are making a lot of money off these players. >> universities and ncaa is a multi-billion-dollar

organization, tax-free. and if these kids have representation, then they'll have an opportunity to level the playing field. >> what about the flip side of the argument they're getting a great education that they might not ordinarily get, they get into schools they probably wouldn't get into they're part of a top, you know school where they get uniforms they get training, they can go in the nfl. what about that, what the university gives them? >> i'll tell you what. what do you think when you hear a full ride? what does that mean to you? when you hear a player has a full ride what does that mean to you? >> full tuition. you don't have to pay for things. full books and all that kind of stuff. >> let me tell you what that really means. these players are given a one-year scholarship. each year they have to make the team, each year they have to pass the fiscal and each year they have to make the grades so it's the school's option whether they renew the scholarship or don't renew the scholarship. the injuries these kids are make.

the reason they call it the amateurs because they don't want to pay them and they can't pay them because they're amateurs. the real myth is if they play the payers they become employees. then they lose the tax-free status and they also have to furnish work man's compensation. >> as you point out a star football player in a division i school can be 800,000 to $1 million in earned revenue. what do you pay them? >> do you give them a little fee -- >> the players get nothing. they'veer and nothing as far as what the schools are making. the players have to have representation, and at that point all these things can be cleared up. you know when you sit down to try to say how much we're going to give u, how much -- money-wise. >> the bottom line is you thank should get a share. >> first of all, they have to get paid. how can you be a 17-year-old, 18-year-old, 19-year-old young man and go to school and account can't work.

they won't let you not have a job. you have no money, no income. it's impossible to survive in that environment. >> dr. argovitz thank you for joining us. congrats on the book. >> thank you. everyone from bob dylan and john mayer are in favor of the martin guitars. we'll take you to pennsylvania to see how they're all made. that's next on "cbs this morning."

[ female announcer ] there are lots of different ways to say get well to your loved ones. ♪ ♪ this came

for you, mommy. [ female announcer ] but it takes the touch of kleenex® brand, america's softest tissue, to turn a gesture into a complete gift of care. [ barks ] send your own free kleenex® care pack... full of soothing essentials at kleenex.com. kleenex®. america's softest tissue. any musician will tell you if you want to create a great sound, you have to have a fine instrument. for nearly 180 years some of the

world east best guitar has been made by a company that's been in one family for seven generations. we went for a tour. ♪ >> reporter: the barn red building in nazareth, pennsylvania, is a musician's mecca. for guitar lovers a visit here is almost a religious experience. because since 1839 this is where martin guitars have been made. >> this is the point at which we fit the neck with the compound dovetail joint in the body. this is something we've done from the beginning. >> reporter: chris martin, the great, great, great grandson of a grandfather who started it presides over the acoustic guitars in the united states. how many guitars do you make here? >> here about 50,000. >> reporter: wow. >> yeah. >> reporter: martin may be the

most coveted acoustic guitar on the planet. bob dylan plays a martin. so does john mayer, steven stils, and sting. >> there's something about a martin guitar that's hard to beat and i knew when i picked one up, i wanted one ♪ >> reporter: country star dierks bentley owns five martins and also endorses a custom model. >> it attaches to the herringbone with this kind of red, white, and blue inlay which i think is really cool that they did and proud to have my name on it. >> reporter: the company has been family owned for six generations. >> this is truly a family story, isn't it? >> yes, very much so. >> c.s. martin started in 1933.

six years later he moved to the pennsylvania countryside where the martin guitar company began to grow into what is now a 200,000-square-foot factory. what made it grow? >> folk music. >> reporter: martin suddenly found itself with four years worth of back orders. the sales boom continued until the '70s. >> when it came to a rather abrupt halt thanks to disco. ♪ you should be dancing yeah ♪ >> which was no good for anyone who made live music. that's when we struggled. we went from producing over 20,000 guitars to 3,000. >> reporter: in the depth of that slump, chris martin then 31 succeeded. >> you essentially had to rescue the company. >> i tried not to think about it. i tried not to think about the dire consequences. i just -- it -- it couldn't

happen. >> reporter: so martin went back to basics. >> what i said to my colleagues was if we're only going to sell 3,000 guitars, let's make them the best 3,000 guitars the world has ever seen, and that resonated with them because we were all kind of down in the dumps. >> reporter: but the company rallied. and when mtv launched its unplugged series musicians rediscovered acoustic guitars and business started booming again. the nazareth plan now has more than 500 employees like milton. how long? >> i'm in my 43rd year. >> reporter: 43. and you dad worked here? >> oh yes, and my two sons. >> reporter: martin also has a plant in mexico. did you imagine you would come

back? >> i never imagined it would be this popular worldwide. >> reporter: what do you attribute it to? >> i really think that musicians, they continue to rediscover just how cool it is to take a finely made wooden box with metal strings on it and hold it against their body and feel it vibrate. i think they find something very inspiry in that. >> it is a really cool place and if you're passing through nazareth, pennsylvania, you can take a tour and it's great story. >> i'm glad the guitar came back after those evil years. >> of disco in which some participated and we won't talk about it. >> let's pause. what do you mean? >> no, no no. another day. >> that's another day, another story. that does it for us today. up next your local news. we'll see you tomorrow on "cbs this morning." have a good one. -- captions by vitac -- www.vitac.com

>> your realtime captioner: linda marie macdonald good morning. it is 8:55. i'm elizabeth wenger with your cbs 5 headlines. contra costa county residents may pay more for water this year. a proposal to raise rates 3.5% goes before the contra costa water district board tonight. it starts at 6:30 at the district headquarters in concord. san francisco kids could apply for free muni passes starting today. it's the first step in a new program offering free rides to low income youth. muni is accepting those applications online. free rides will start march 1. and it is chilly in the bay area! but you have to avoid burning wood in your fireplace. today is a "spare the air" day in the bay area the second in a row. there might be another one because of air pollution that's still beyond healthy levels.

with more on this cold forecast, here's lawrence. >> yeah. very cold start to the day around the bay area. skies nice and clear though. everywhere you go, lots of sunshine out there now. but cold temperatures indeed. numbers into the 20s and the 30s in many of the valleys now. 40s as you pass san francisco and part of the coastline. looks like those numbers are going to be warming up in the 50s by the afternoon. low 50s and keeping you cool though into the east bay as high as 57 in san jose. and 53 degrees in san francisco. as we look toward the next couple of days, we are going to see more sunshine just some chilly mornings and then toward the weekend, we might even see a couple of showers on sunday. all right. we are going to check your "timesaver traffic" coming right up.

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good morning. westbound san mateo bridge reports of a two-car crash at the high-rise. traffic slow approaching the scene. elsewhere, though, looking good eastbound into hayward at jackson street, now open from an early water main break. 880 northbound at 23rd accident blocking lanes causing a backup northbound 880 through oakland. live look at conditions there. 23-minute ride now to go from 238 to the maze. westbound 580 towards 24, as you work your way through the maze, we have reports of an accident blocking lanes but once you get past that no delays to report towards the bay bridge toll plaza. metering lights are off and a clear ride. ace train number 6 delayed. the rest of mass transit on

time and no delays in the south bay.

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